Recreational Foreclosures
Easy Economic Question…(easy 10 points)?
There’s a big piece of land that borders a lake on the southeast of the city. The land is vacant and has gone into foreclosure.
One group of citizens want to make the land a recreational area complete with swimming and picnic areas. But it will cost $250,000. Funds will be required to staff the area and to police and maintain it.
Another group wants to make the land a luxury hotel and conference center, something the city doesn’t have. The sale will provide $110,000 in revenue for the city. When the hotel is operational, there will be tax money coming into the city.
The city manager has to solve the issue.
1.) What are the advantages and disadvantages of the choices facing the city manager?
2.) If you were the city manager, which choice would you favor? Why?
1) Advantages to the recreation area idea: make one group of citizens happy.
1a) Disadvantages to the recreation area idea: $250,000 of public money, an indefinite drain on resources for maintenance.
2) Advantages to the resort idea: $110,000 in revenue immediately, plus tax revenue for the foreseeable future.
2a) Disadvantages to the resort idea: make one group of citizens mad.
3) I would favor the resort idea. It does the most good for the most amount of people.
Bank Foreclosure in Nautica Lakes – Royal Palm Beach, FL
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Athletic Club owners to fight foreclosure.(Commercial Real Estate): An article from: Arkansas Business $9.95 This digital document is an article from Arkansas Business, published by Journal Publishing, Inc. on March 9, 2009. The length of the article is 399 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Athletic Club owners to fight fore… |
